Leader Justin Trudeau has declared a tax cut for the middle class. His first priority, promising to raise the basic personal deduction over four years so the first $15,000 of money earned is tax-free for Canadians earning $147,667 a year or less. The current basic personal amount—the income on which federal taxpayers are not taxed—is $12,069. The move would save the average individual $292 a year and the average family $585 a year, according to the party.

“Far too many Canadians are living paycheque to paycheque,” Trudeau said Sept 22.

The plan would cost $2.9 billion in the first year, rising to $5.6 billion by 2023-24.

The Liberals would also increase the federal minimum wage to $15 per hour and introduce a 10 per cent tax on luxury vehicles, boats and aircraft.

In addition, Trudeau has pledged to boost old age security by an extra 10 per cent once a senior turns 75, beginning in July 2020, and increase the Canada Pension Plan survivor benefit by 25 per cent.

The Conservative Promise

The Conservatives are touting a universal tax cut that would apply to the lowest federal income bracket. By reducing the rate on taxable income less than $47,630 to 13.75 per cent from 15 per cent, the party estimates it would save an individual $444 per year or $850 per year for a double-income couple.

“Every Canadian taxpayer will see their income taxes go down. And those in the lowest tax bracket will see the biggest proportional tax cut of all,” Conservative Leader Andrew Scheer said Sept. 15.

The broad-based cut would cost about $6 billion annually once fully phased in.

The NDP Promise

The New Democrats would implement a “wealth tax” on the super-rich, putting a one per cent tax on fortunes of more than $20 million.

The party says the tax would apply to one-tenth of one per cent of Canadians households.